CNBC: U.S. crude oil rises to $73 per barrel after erasing most of 2024 gain
U.S. crude oil rose to $73 per barrel on Thursday after erasing most...
U.S. crude oil rose to $73 per barrel on Thursday after erasing most of its gains for the year as soft demand in China and worries about the U.S. economy weighed on the market.
The U.S. benchmark is now up about 2% for the year, while global benchmark Brent crude has erased virtually all of its gains for 2024. The benchmarks are down 15.7% and 14.8%, respectively, from April highs when Israel and Iran nearly went to war.
Here are Thursday’s closing energy prices:
West Texas Intermediate October contract: $73.01 per barrel, up $1.08, or 1.5%. Year to date, U.S. crude oil has gained 1.9%.
Brent October contract: $77.22 per barrel, up $1.17, or 1.54%. Year to date, the global benchmark is marginally up 0.23%.
RBOB Gasoline September contract: $2.24 per gallon, more than 3 cents higher, or 1.76%. Year to date, gasoline is ahead 6.7%.
Natural Gas September contract: $2.05 per thousand cubic feet, 12 cents lower, or 5.7%. Year to date, gas is down 18.3%.
“Some of the slowdown is to be expected with slower China GDP growth and the rapid rise in EVs,” Struvyen told CNBC’s “Squawk Box Asia” on Wednesday. But “some of the slowdown is unexpected — this switching to LNG away from diesel,” he said.
S&P 500 logs worst day since early August selloff ahead of Powell speech Friday
U.S. stocks closed lower on Thursday as bond yields rose and investors waited to hear...
U.S. stocks closed lower on Thursday as bond yields rose and investors waited to hear from Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Symposium on Friday.
The Dow Jones Industrial Average fell about 177 points, or 0.4%, closing near 40,713, according to preliminary data.
The S&P 500 shed about 50 points, or 0.9%, to close around 5,570, logging its worst daily decline since Aug. 5, when it tumbled 3%.
The Nasdaq Composite lost about 299 points, or 1.7%, closing near 17,619.
"Powell is expected to lay the groundwork for the Fed’s first rate cut in over four years," Adam Turnquist, chief technical strategist at LPL Financial, wrote in emailed comments Thursday. "Signs of reduced pricing pressures and cooling economic growth will likely be enough for policymakers to start reducing the target rate."
According to Dow Jones Market Data, the 10-year Treasury yield jumped 8.5 basis points to 3.862%, notching its biggest daily gain in a week.
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An oversaturated market and Permian Basin pipeline bottlenecks forced US oil operators to sell associated natural gas at rock-bottom prices in the second quarter and even scale back oil production to manage excess gas. Despite the gas price slump, strong crude sales kept oil companies' profits solid, while relief on the gas side is on the horizon as new pipelines prepare to enter service.
US oil exports on track for slowest growth since 2015
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Slow domestic production growth and weakening global demand are putting a lid on US crude oil export increases after years of rapid expansion. Government data show that US crude oil exports increased by 3.5% on an annual basis to average roughly 4.2 million barrels per day so far this year, marking the slowest growth since the US lifted its crude export ban in 2015.
What's at stake for O&G if Canadian rail workers strike
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A potential rail strike by nearly 10,000 Canadian rail workers poses little threat to crude oil exports to the US thanks to greater reliance on pipelines, but analysts say it could wreak havoc on the natural gas liquids and refined products markets if it drags on. Extended rail disruptions could drive propane prices higher in the Northeast and western US and strain Canada's crude transport system.
